Firms are required to comply with new uncleared margin rules by September 2020 or face fines and penalties. This white paper describes the process banks and buy-side firms must adopt to comply with the Basel Committee on Banking Supervision (BCBS) and International Organization of Securities Commissions’ (IOSCO) new uncleared margin rules (UMR), set to take effect next year.
The paper defines five core elements needed for operational conformity, as well as the many options presented at each phase of the process. As a “day in the life” of managing Initial Margin under UMR unfolds, from loading the required data, to calculating calls, to communicating the demand, and finally, instructing movements and reconciling the portfolio, industry members will gain a better understanding of what is happening at each stage of the process and the underlying inputs and complexities that are required to support it.
Also included in this white paper are tips for devising an end-to-end solution, as well as a shopping list of components needed to reduce cost and ensure efficient compliance while there’s still time.